Illinois Industries has two divisions, East and West. You are given the following information about the costs of four activities that occur at corporate headquarters: Activity T otal Costs Activity-cost drivers Managing accounts payable $100,000 4,000 transactions Managing human resources 200,000 700 employees Managing accounts receivable 150,000 3,000 hours Managing computer network 250,000 500 computers Total costs $700,000 The above activities are used by the two divisions as follows: East Division West Division Accounts payable transactions 1,200 transactions 2,800 transactions Number of employees 300 employees 400 employees Accounts receivable hours 2,000 hours 1,000 hours Number of computers 200 computers 300 computers Reference: Ref 7-7 How much of the Accounts Payable cost will be allocated to the East Division?

Exercise 12-7 shown below are comparative balance sheets for flint corporation. flint corporation comparative balance sheets december 31 assets 2017 2016 cash $ 201,348 $ 65,142 accounts receivable 260,568 225,036 inventory 494,487 559,629 land 236,880 296,100 equipment 769,860 592,200 accumulated depreciation—equipment (195,426 ) (94,752 ) total $1,767,717 $1,643,355 liabilities and stockholders’ equity accounts payable $ 115,479 $ 127,323 bonds payable 444,150 592,200 common stock ($1 par) 639,576 515,214 retained earnings 568,512 408,618 total $1,767,717 $1,643,355 additional information: 1. net income for 2017 was $275,373. 2. depreciation expense was $100,674. 3. cash dividends of $115,479 were declared and paid. 4. bonds payable amounting to $148,050 were redeemed for cash $148,050. 5. common stock was issued for $124,362 cash. 6. no equipment was sold during 2017. 7. land was sold for its book value. prepare a statement of cash flows for 2017 using the indirect method.